Customer relationships management as the key factor for provision of the business services’ company competitive ability

One of the key trends of modern economic development is the growth of the service industry and its share in the global economy. In the last quarter of the 20th century and the beginning of the 21st century, the service industry’s share grew rapidly. Today the service industry’s share in the economy of some countries is up to 50 % while in most developed countries it is up to 70 % [1]. Since the 1990s these trends were clearly seen in the Russian economy.

The rapid growth of the service industry in the Russian economy is particularly evident in the business service industry where there is a great number of small and medium businesses. This growth is particularly visible due to the relatively small size of seed capital required to enter the market, and the significantly increased needs in these services from big business. In addition, the service sector begins to play a significant role in employment issues. In this regard, there is an increasing need to develop scientific approaches to the study of this area.

The concept of “service industry” has long been used in theory and in practice. It has become a familiar and frequently used term.

Kotler firmly believes: “In the end, all should be limited to the services sector. First, a customer buying a product, actually buys the services that the goods offer. Car is a means of transportation; soap provides its owners the opportunity to wash their hands; tutorial provides knowledge and information” [2].

Chelenkov A. P. defines the service in marketing as a coherent process of interaction between two or more subjects of the market where some agents act on others in order to establish, expand or reproduce the opportunities to receive basic benefits (welfare) [3]. Considering the scope of services, the author points out their relationship with the goods. Under the conditions of constant technological processes, goods and services markets have become almost inseparable from each other (production of goods requires their continued service, etc.) [3].

The services sector is divided into consumer services (targeted to a wide range of individuals) and institutional services.

Institutional services are considered services, the consumers of which do not favor individuals, but companies, organizations, institutions and other economic and managerial structures. The bulk of institutional services are business services.

Business (professional) services are services provided to companies, organizations, institutions and other household and administrative structures, as well as separate individuals which contribute to a successful professional activity or profit.

The proposed interpretation of the above terms may create an impression that there are diffuse notions of business services and consumer services. To some extent this is true, but only partly. The concept of business services is integrated between the concepts of institutional services and consumer services.

Business service is a form of business that provides economic services and management structures and individuals to ensure their professional activities or for profit.

Currently, services as an economic phenomenon is an enormous area of production, financial, legal and social relations, which as it develops, promotes and catalyzes the processes occurring in the areas of production, social

(state, municipal) administration, distribution and consumption. Market infrastructure is a specific selfregulating system of divergent industries. In addition, each component of this system is unique.

The consumer is one of the most important elements in the market of a company. There are three main groups of consumers by the nature of consumer preferences: the mass consumer, segmented consumer, and the individual consumer. Taking as a classification feature the type of customer, who mainly focuses on service, business services can be represented as follows (sce table).

The characteristics of the service-oriented system of consumer preferences “mass consumer” includes a standardized range of services, relatively low cost, a large number of separate users, the lack of response to the changing needs of individual consumers, and the availability of information about the company provider. For the mass consumer, undifferentiating tools of mass effect are most effective: advertising, sales promotion methods and PR (public relations), as well as the use of an effective pricing policy and the standardization process of providing basic services.

Most business services are focused on the segmented consumer. The characteristics of the service-oriented system of consumer preferences “segmented consumer” includes an extensive range of services, optimal price and quality of services, availability of groups interacting with each other, and consumer selectivity of the reaction to the changing needs of individual consumers and the company known provider. In the target market segments the company comes out with a specific set of services, with support of their target set of tools specific to the market and product. This strategy ensures a higher volume of sales, and lower level of risk when compared with the strategy of concentrated exposure. The most effective strategy for differential impact for this group of consumers is the use of instruments of direct impact: telemarketing, fax, email, mailing lists, etc. However, this strategy first and foremost requires a high level of management organization. There is a need for permanent, continuous contact and interaction with customers to create positive consumer attitudes to the products of the enterprise. To do this you must use a system of individual actions. The application of modern information technology becomes important then.

The group “individual users” are market participants who have different internal properties, but a combined demand for certain services. Characteristics of the service-oriented system of consumer preferences of individual consumers includes a personalized range of services, flexible pricing policy, a strictly limited number of individual consumers, a company known provider that is responsive to the changing needs of consumers. The most effective strategy of concentrated exposure for this group of consumers is the use of instruments of direct impact, as well as personal sales.

Under conditions of instability, consumer preferences require businesses to diversify services and specialized companies to provide certain types of services. Timely detection of consumer preferences, building services and, increasingly, the choice of appropriate tools to deliver information about new services to consumers can reach the consumer in a timely manner, and thereby significantly improve competitiveness in business services.

Classification of Business Services

Services	Characterization of services by consumer preferences	Consumer	Collaborative tools
– In the area of real estate (real estate, appraisal, etc.); – Printing; – Communication services; – Transportation, etc.	Standardized range of services, relatively low cost, a large number of disparate users, the lack of response to the changing needs of individual consumers, the availability of information about the company-provider	Mass consumer	Tools of mass effect: advertising, sales promotion methods and PR (public relations)
– Services of research and development; – Advertising services; – Civil engineering and architectural services; – Leasing (equipment rental services); – Financial services; – Educational services; – Services of security companies; – Legal services, etc.	Extensive range of services, optimal balance of price and quality of services, availability of groups of interacting users, the electoral response to the changing needs of individual consumers, known company provider	Segmented consumer	Tools of direct impact: telemarketing, fax, electronic mailing lists, etc.
– Urban and landscape planning; – Services, personal security, etc.	Individualized range of services, flexible pricing, a strictly limited number of individual consumers, known enterprise provider, responsive to the changing needs of consumers	Individual consumers	Personal sales

In modern literature there are three main approaches to the interpretation of the concept of “competitive companies”: product, economic, managerial (administrative). The essence of the product approach is a focus on the ability of continuous improvement of the product (product line). The essence of the economic approach is to recognize the priority of economic characteristics under companies matching, the most common of which are the profits of a business entity, its costs and, as a target parameter, the ratio between them. The management approach assumes that to achieve the effective market position, the leading role is played by enterprise management and that its improvement is given priority in the competitive environment [4]. The predominant trend in modern conditions is a managerial approach.

For businesses, business services, working in highly competitive markets with established rates, relatively high cost of services, with an assortment side, slightly different in their qualitative characteristics, the most important factor in ensuring the PCB is the level of management. The use of other factors to increase competitiveness is largely limited. In this situation, the introduction of effective enterprise management systems rises to the fore, including systems for customer relationship management.

A task-oriented management system of enterprise competitiveness to meet the needs and requirements of clients and the application of principles of interaction between producers and consumers requires the implementation of continuous consultation and coordination tools of promotion.

Changing priorities to ensure maximum efficiency in the short term, focus on long-term cooperation, and building partnerships with customers and suppliers and other market participants can achieve sustainable longterm competitiveness. The effective use of tools and methods of promotion emerges as a leading factor in ensuring the competitiveness of service industries.

Author’s model of competitiveness of business services is provided in the figure.

In terms of control factors of competitiveness are divided into two distinct groups: external and internal to business services. Management of a company’s activity is an active adaptation of external uncontrollable factors through direct effects on controlled factors in accordance with the stated objectives.

The consumer is one of the external factors of competitiveness that the company may be exposed to through internal factors. In the highly competitive market of business services, the “factor of the consumer” is of the first importance to ensure the competitiveness of the enterprise. As noted above, there are three main groups of consumers: the mass consumer, the segmented consumer, and the individual consumer. In order to ensure its competitiveness, the enterprise chooses a group of consumers (both existing and potential), which is focused mainly on its services. Then tools are selected depending on the system of consumer preferences and methods of interaction with the selected category of consumers.

Model for the competitiveness of the enterprise business services

The system of consumer preferences of the individual user includes an individualized range of services, flexible pricing, depending on the volume of services, the ability to carry out a significant amount of orders, a known enterprise provider, and high quality services responsive to the changing needs of the consumer. The most effective strategy of concentrated exposure for this group of consumers is using instruments of direct impact, as well as personal sales. Using tools of direct marketing, the preferences of enterprise customers are clarified, the offers are tailor-made to meet them, taking into account the specific needs of the consumer. At this stage personnel of the company should be directed not primarily to obtain maximum economic benefits in the short run, but to create a contact with the consumer in order to stimulate further purchases of regular maintenance. Thus, the activities of the company should be directed to the establishment of “partnership” relationship with the largest possible number of consumers. Establishing such a relationship provides the company with orders in the future, and can increase sales specific to the consumer (“grow” it to the largest category of customers), reduce the cost of sales, allow them to raise prices without the fear of losing customers, and as a consequence lead to the long-term competitiveness of the enterprise.

Nowadays the world economy, the services market in particular, grows with the number of enterprises working in it, expanding the range of services and increasing competition. The pressure raises the question of maintaining itself in the market on the survival and development of the company. These trends are forcing companies to look for ways to preserve and expand their market share, improve the competitiveness of their products (services) and the enterprise itself. Under the saturated conditions of the proposal, a limited number of service users, with a preference for variably effective techniques in relationship management with consumers can be an effective tool for ensuring the competitiveness of enterprises in business services in the long term.